Home >World
Wildfires burning Russian economy
By CHENG GUANGJIN
Aug 13 2010 9:32
Email | Print | Share Text Size 
  1 of 1
Agencies
Russian firefighters cut trees as they prepare to extinguish a fire at a forest near the village of Tokhushevo, some 50 kms outside Sarov on Wednesday.

BEIJING — Russian economists see opportunities from a raging wildfire despite an estimated $15 billion in direct economic losses.

The impact of the wildfire on the economy is two-sided, said Boris Porfiryev, an economist at the Russian Academy of Sciences, as the "increased price of grain and some other commodities will reduce the loss in GDP."

"The turnover of some sectors will not decline because of increased commodity prices and enlarged production. As for the total loss in GDP, it is still too early to estimate," Porfiryev said during a video press conference from Moscow hosted by RIA Novosti, Russia's news agency in Beijing.

There are other sectors of the economy that, however inadvertently, also stand to benefit from the situation.

"Some sectors, such as soft drinks, ice-cream and air-conditioners, have benefited from the drought with increased turnover," Porfiryev said.

Russian newspaper Kommersant reported on Tuesday that the loss from the forest fire was estimated to account for 1 percent of its GDP in 2010, which is about $15 billion. This figure of direct economic loss does not include funds for reconstruction and environmental restoration.

Moscow has choked for days on acrid smoke that has seeped into apartments, offices and even into the Moscow subway.

AFP reported Russia sent a special firefighting train to join over 3,400 firefighters battling wildfires close to its top nuclear research center.

The total area covered by fire across Russia was reduced by 10,000 hectares and nearly 50,000 people were now battling fires in central Russia, AFP reported.

Chinese experts said the impact of the fire, mainly on Russia's agricultural and industrial sectors, is long-lasting.

Readers' Comments
Add Your Comment